Toronto Shares Climb as Energy Gains

Detour, RBC in Focus

Canada's main stock index gained on Tuesday in a broad-based rally led by energy stocks, which were supported by higher oil prices.

The S&P/TSX Composite Index strode out of the gate, gaining 168.12 points, or 1.1%, to begin a new session at 14,896.40

The Canadian dollar dropped 0.02 cents to 74.61 U.S.

On a day without macroeconomic figures, Cenovus Energy said it would reduce its capital spending for 2019 by 4% amid a broader turnaround plan following its highly criticized deal with ConocoPhillips.

Shares in Cenovus took on 36 cents, or 3.6%, to $10.40.

First Quantum Minerals jumped 44 cents, or 3.7%, to $12.30.

Finning International rose $1.03, or 4.2%, to 25.57, after the company acquired mobile on-site refueling company 4Refuel.

New Gold fell a penny to $1.12, while Westjet Airlines faltered 62 cents, or 3.2%, to $18.92.

Hydro One and its buyout target, Avista Corp, said they would file a petition, asking the Washington Utilities and Transportation Commission to reconsider its order rejecting their merger.

Hydro One shares doffed eight cents to $21.10.

Detour Gold said on Monday it extended the voting deadline by two days after some shareholders with substantial holding voted to replace the entire board.

Detour shares gained 22 cents, or 2.1%, to $10.75.

CIBC cut the price target on NFI Group to $50 from $61 to reflect the higher risk premium required for North American Original Equipment Maker equities, given the more uncertain macro environment.

NFI shares lost 15 cents to $33.73.

Desjardins Group cut the price target on Royal Bank of Canada to $108 from $109 citing slowing loan growth, highly indebted consumers and recent pressure on oil prices.

Shares in Canada’s largest bank increased in price 74 cents to $94.83.

ON BAYSTREET

The TSX Venture Exchange recovered 2.97 points to 566.46.

All 12 TSX subgroups began the day on the positive side, with health-care growing 1.8%, information technology stronger 1.7%, and industrials marching forward 1.6%.

ON WALLSTREET

Stocks jumped on Tuesday amid signs that U.S.-China trade relations could be improving, bringing a sigh of relief to investors in a volatile investing environment.

The Dow Jones Industrial Average popped 220.59 points to 24,643.85

The S&P 500 leaped 29.23 points, or 1.1%, to 2,666.95.

The NASDAQ gained 87.56 points, or 1.3%, to 7,108.08

Bloomberg News reported earlier on Tuesday that China is moving toward cutting tariffs on cars made in the U.S. to 15% from the current 40%. The proposal has been submitted to the Chinese Cabinet and will be reviewed in the coming days, the report says.

Shares of Ford Motor, General Motors and Fiat Chrysler all rose more than 2%.

Caterpillar shares rose 2.7% while Deere gained more than 3%. Shares of Boeing climbed more than 1%. These stocks are seen as bellwethers for global trade because of their exposure to overseas markets.

Prices for the benchmark for the 10-year U.S. Treasury were unchanged, keeping yields at Monday’s 2.86%.